Traders of bank stocks should continue to employ a "buy and trade" strategy, but be aware of the downside risks among the eleven components of the BKX I profile today. I last profiled five of these banks on Aug. 15 in Time to Book Profits in Financial Stocks: Opinion.

Chart Courtesy of Thomson/Reuters

The daily chart for the BKX (49.58) shows declining momentum with the 21-day, 50-day and 200-day simple moving averages at 49.11, 47.38 and 45.46. My quarterly and annual value levels are 46.03 and 42.98 with a weekly pivot at 50.70 and monthly risky level at 52.99 versus the year to date high at 52.11 set on Sept. 14 in reaction to QE3.